Dixon Advisory has supported former treasurer, Peter Costello, who has warned that working Australians should be making their own additional superannuation contributions and that the reliance on compulsory employer contributions was not enough.
The firm’s head of advice, Nerida Cole, said that the changes that the superannuation and the Age Pension system had undergone recently continued to confuse people and there was need for more flexibility.
“Boosting your super as early as possible can make a huge difference to your financial position at retirement – but the reality is many people cannot afford to add extra to super until the later stage of their careers when the mortgage is out of the way – our system needs to reflect that reality,” she said.
According to her, the changes should also take into account persistently underperforming super funds coupled with 10 million unintended multiple accounts.
“Fortunately, there are plenty of very good super funds out there so there is no need for most of us to stay with a fund that is not doing well or working for your particular needs,” Cole added.
Also, women would retire with almost 50 per cent less in super than men on average, with single older women facing even greater risk of poverty in retirement.
“That’s an important point to acknowledge – a stable retirement is not just about your super balance. It’s also access to affordable and stable housing and access to mature age employment opportunities.”